The paper 'Leadership Challenges and Strategies in a Post Global Financial Crisis World" is a good example of management coursework. Executive leadership after the Global financial crisis has increased in complexity and is much more challenging. The captains of business have lost their legitimacy in the eyes of the public as they lost shareholders billions of their hard-earned money. Since the GFC is owed to the greed of top corporate officers, scrutiny of their work has increased tremendously. Every stakeholder in the organization now demands to know what is going on in the management echelons of the organization. This essay intends to review the various challenges leadership is facing in the post-GFC management period.
The paper starts by reviewing the view of various authors on the challenges facing corporate leadership post-GFC and the possible solutions to these problems. Secondly, it takes an in-depth analysis of three challenges facing organizational leadership after the GFC crisis and the possible solution to these problems. The issues addressed are low employee engagement, stringent financing conditions, and the disregard of the leader’ s educational qualifications. Thirdly, the paper discusses innovative leadership solutions that are being applied by the organization as a response to the challenges of leadership after the GFC.
The leadership of Automaker BMW and the leadership of Southwestern Airlines are sampled for their innovative leadership that appropriately reacts to the post-GFC leadership crisis. Literature review Discussion and opinions on the leadership challenges and possible option to handle them remain varied. James (2012) in an article for Leading Company identifies financing as one of the major hurdles of leadership after the GFC crisis. Banks show a greater reluctance to finance the investment of organizations.
Banks were among the leading institution that suffered most from the GFC (Henry 2011). The collapse of JP Morgan Chase as American bank that was thought to be to big go under has changed the way banks approach lending. Another challenge facing business leaders in the public disregard of their MBA education. The public resents that MBA educated leaders had no clue on how to stop the GFC as it took its toll on investor’ s funds. The problem of poorly-educated executives is compounded by the commercialization of education.
It is now possible for people to gain an educational qualification through poorly controlled online courses whose quality is in doubt (Starr 2014). In the view of Shoemaker (2008), highly commercialized education is only producing business texts and nothing in terms of applicable business skills. Business leaders also have the challenge of ensuring their businesses succeed in a competitive business environment while avoiding excessive risk-taking. Over-optimism and excessive risk-taking are identified as the leading causes of the GFC (Coleman and Pinder 2010). However, businesses cannot succeed without taking risk which leaves a dilemma in the minds of corporate leaders.
Leaders have to choose between a conservative approach to risk-taking which holds the little potential for organizational profits and substantial risk-taking which may guarantee the success of the organization. Schoemaker (2008) says that business leaders have to deal with the loss of legitimacy of businesses and business leaders. The public increasingly views businesses as a force for evil rather than good. Going by the number of people who lost their life-time savings in the GFC, the public is justified in taking such a dim view of business and its leaders.
Avery, GC, & Bergsteiner, H 2011, How BMW successfully practices sustainable leadership principles. Strategy & Leadership, vol. 39, no. 6, pp. 11-18.
Ceoforum.com.au n.d, Winds of change: Interview with Thomas Monahan - Chairman and CEO - Corporate Executive Board NYSE, Accessed 2nd may 2014, http://www.ceoforum.com.au/article-detail.cfm?cid=10750&t=/Thomas-Monahan--Corporate-Executive-Board/Winds-of-change/
Coleman, L, & Pinder, S 2010, What were they thinking? Reports from interviews with senior finance executives in the lead-up to the GFC, Applied Financial Economics, vol. 20, no 1-2, pp. 7-14.
Du, S, Swaen, V, Lindgreen, A, & Sen, S 2013, The roles of leadership styles in corporate social responsibility, Journal of business ethics, vol. 114, no. 1, pp. 155-169.
Gittell, JH 2004, The Southwest Airlines Way: Using the Power of Relationships to Achieve High Performance, ILRReview, vol. 57, no. 3, pp. 90
Gittell, JH, & Bamber, GJ 2010, High-and low-road strategies for competing on costs and their implications for employment relations: international studies in the airline industry 1, The International Journal of Human Resource Management, vol. 21, no. 2, pp. 165-179.
Henry, K 2011, The Australian banking system-challenges in the post global financial crisis environment, Economic Round-up, vol. 1, no. 13
James, D 2012, How leaders are held to account post-GFC, Leading Company, 4th October, Accessed 2nd may 2014, http://leadingcompany.smartcompany.com.au/leadership/the-post-gfc-manager-how-leaderhsip-has-changed/201210032628?displaypage=start.
Schoemaker PJ 2008, The future challenges of business: Rethinking management education and research, California Management Review, vol. 50, no. 3, pp. 119-139.
Starr, K 2014, The game-changers: exploring radically transformational challenges confronting education business leadership, In Global Conference on Business and Finance Proceedings (2014: Honolulu, Hawaii) (pp. 265-276), The Institute for Business and Finance Research.
Voegtlin, C, Patzer, M, & Scherer, AG 2012, Responsible leadership in global business: A new approach to leadership and its multi-level outcomes, Journal of Business Ethics, vol. 105, no. 1, pp. 1-16.
Waddock, S & Lozano, JM 2013, Developing More Holistic Management Education: Lessons Learned From Two Programs, Academy of Management Learning & Education, vol 12, no. 2, pp. 265-284.